Nepal Oil Corporation (NOC) was established in January 1970 by the Government of Nepal as a state-owned trading company to deal with the import, transportation, storage and distribution of various petroleum products in the country.NOC, headquartered in Kathmandu, has Five Regional Offices and also Branch Offices, Fuel Depots and Aviation Fuel Depots with total storage capacity of 71,558 Kilolitres (KL) and around 600 employees.

Nepal is a land locked country bordering three sides by India and the northern part of snow fed Himalayas by Tibet/China. Nepal does not produce any oil and depends totally on imports in the refined form, as it does not have any oil refinery. NOC is the sole organization responsible for the import and distribution of petroleum products through around 1200 Tank Trucks and 1500 retail outlets owned by the private sector around all parts of the country.

Nepal is becoming more dependent on petroleum products for meeting its energy requirement. The demand of products like MS, HSD, SKO, ATF and LPG is about 1.2 million ton (MT) per annum with annual increase by 20%. Petroleum products constitute about 11% of total energy consumed in Nepal. The nearest port in India is Haldia(Kolkata) which is about 900 km from nearest international border. The transportation from nearest sea port to Nepal is the main constraint for import of POL from third country.All the petroleum products consumed in Nepal are procured and imported from Government of India (GOI) undertaking national oil company, i.e. Indian Oil Corporation Ltd (IOC) under a 5 years’ Contract Agreement signed on 31st March 2007.NOC uplifts petroleum products as per its requirement from IOC’s 6 nearest refineries and depots situated in eastern and northern part of India. The transportation from IOC locations to NOC depots and to retail outlets is done by Tank Trucks. To meet the increasing demand, a MOU between IOC and NOC for construction of cross border Petroleum Product Pipeline from IOC’s depot (Raxaul) to NOC’s depot (Amlekhgunj ) has been signed. The Detailed Feasibility Report (DFR) of the proposed pipeline has also been prepared and the construction/investment modalities are under discussion between the companies.

The highest policy making and controlling body of NOC is its Board of Directors .The Managing Director (MD) who is also member secretary of NOC Board has the overall responsibility for management and operations. The pricing of major petroleum products like MS, HSD, SKO and LPG needs approval from the Government of Nepal.

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